Ransley, E.M. v. Australian Public Service Association (Fourth Division Officers) Tasmanian Branch & Ors [1985] FCA 642
Federal Court of Australia
Full text
Select any passage to save a personal note with optional tags.
weed
appointment as organizer valid ~ whether organizer entitled to be
member - validation of membership by subsequent application -
whether elected secretary/treasurer an employee of organization -
whether temporary employee entitled to be member.
Conciliation and Arbitration Act 1904, s. 170, s. 144, s. 159, 5s.
171C, s. 171E, s. 132, s. 140, s. 1718, 5. 4(1), 5. 4(7).
Conciliation and Arbitration Regulations reg. 115.
Public Service Arbitration Act 1920, s. 4, 5. 82.
R. v. Gray; Ex parte Marsh (High Court of Australia, 17th
October 1985, unreported.)
Landeryou v. Taylor (1968) 15 F.L.R. 147
Rounsevell v. Mitchell (1967) 11 F.L.R. 414
Grove v. Rigby (1971) 19 F.L.R. 160
Holden v. Richardson (Federal Court of Australia, Keely J. 21st
July 1978, unreported. )
Re Election for Office in Professional Radio Employees Institute
of Australasia (1961) 3 F.L.R. 151
Egan v. Harradine (1975) 25 F.L.R. 336
re)
Bl /iof¥
- cus
CATCHWORDS
Industrial law - registered organization - election - whether
candidates required to be members of organization - whether
-2-
R. v. Moore; Ex parte Australian Workers' Union (1976) 11 A.L.R.
R. v. Moore; Ex parte Federated Miscellaneous Workers' Union of
Australia (1978) 140 C.L.R. 470
Roughan v. Coulson (1982) 3 I.R. 393
Re Brzycki; Ex parte Royal Australian Nurses Federation South
Australian Branch (1984) 2 F.C.R. 546.
EILEEN MARY RANSLEY ov. AUSTRALIAN PUBLIC SERVICE ASSOCIATION
(FOURTH DIVISION OFFICERS) TASMANIAN BRANCH
IN THE MATTER OF AN APPLICATION BY R.W. RIEP FOR AN INQUIRY INTO
ELECTIONS FOR OFFICES IN THE A.P.S.A. (FOURTH DIVISION OFFICERS)
TASMANIAN BRANCH
IN THE MATTER OF AN APPLICATION BY L. SMITH FOR AN INQUIRY INTO
AN ELECTION FOR OFFICE IN THE A.P.S.A. (FOURTH DIVISION OFFICERS)
TASMANIAN BRANCH
IN THE MATTER OF AN APPLICATION BY C.A. FITTON FOR AN ORDER IN
RESPECT OF CONSEQUENCES OF ALLEGED INVALIDITY IN AN APPOINTMENT
AS_ORGANIZER, A.P.S. (FOURTH DIVISION OFFICERS) TASMANIAN BRANCH
GRAY J.
TASMANIA
6TH DECEMBER 1985
IN THE FEDERAL COURT OF AUSTRALIA
TASMANIA DISTPICT REGISTRY
INDUSTRIAL DIVISION
. T2
No. T3
No. T4
we ewe
led0
RETWEEN:
AND:
EILEEN MARY RANSLEY
of
of
ot
5 of
19851985
Applicant
AUSTRALIAN PUBLIC SERVICE
ASSOCIATION (FOURTH DIVISION
OFFICERS) TASMANIAN BRANCH
Respondent
IN THE MATTER of an application by
ROBERT WALTER RIEP for an inaquirv
into elections for offices in the
AUSTRALIAN PUBLIC SERVICE
ASSOCIATION (FOURTH DIVISION
OFFICERS! TASMANIAN BRANCH
IN THE MATTER of an application by
LEE SMITH for an inquiry concernina
an election for an office in the
AUSTRALTAN PUBLIC SERVICE
ASSOCIATION (FOURTH DIVISTON
OFFICERS) TASMANIAN BRANCH
IN THE MATTER of an application by
CHRISTINE ANNE FITTON for an order
in respect of consequences of
alleged invalidity in an appointment
as organizer, AUSTRALIAN PUBLIC
SERVICE (FOURTH DIVISION OFFICERS)
TASMANIAN BRANCH
JUDGE: GRAY J.
DATE: 6TH DECEMBER 1985
REASONS FOR JUDGMENT
These matters arise out of an election for the office of
branch secretarv/treasurer in the Tasmanian Branch of the
Australian Public Service Association (Fourth Division Officers)
("the Association"). The Association 1s an orqanization of
employees, registered pursuant to the Conciliation and
Arbitration Act 1904 '"the Act"). The rules of the Association
required the conduct of an election in August 1985 for the
position of secretary/treasurer of the Tasmanian Branch. As a
result of a request pursuant to s. 170 of the Act, the election
was conducted by Bruce Charles Taylor, an officer of the
Australian Electoral Commission. The period for lodaing
nominations opened on 28th August, and closed on 17th September.
Three nominations were received, from Lee Smith. Eileen Ransley
and Christine Anne Fitton. The returning officer rejected the
nomination of Ms. Ransley. but accepted those of Mr. Smith and
Ms. Fitton. A ballot was conducted between those two candidates,
on and between lst and 28th October. The returning officer
issued 741 ballot papers in the first instance, and subsequently
-32-
rssued a further 80. The result was 260 votes for Ms. Fitton and
89 for Mr. Smith. The result of the ballot has not vet been
declared formally. By way of interim order, the Court restrained
the returning officer from taking any step in the conduct of the
election, other than the counting of votes. The declaration
would normally have occurred at the annual general meeting of the
branch, on 12th November.
On 8th October 1985. Ms. Ransley made application in
matter number T2 of 1985. She seeks a declaration. pursuant to
s. 144 of the Act, that she 1s entitled to be admitted as a
member of the Association.
On 10th October 1985, Robert Walter Riep made
application to the Industrial Registrar, pursuant tos. 159 of
the Act, seeking an inquiry into the election. On 14th October,
the Industrial Registrar referred that application to the Court.
and an inquiry was thereby deemed to have commenced. The inquiry
1s matter number T3 of 1985, The irregularity alleged in it is
the reiection of Ms. Ransley's nomination.
On 16th October 1985, Mr. Smith made application to the
Industrial Registrar for the conduct of an inquiry into the
election. That application was referred to the Court by the
Industrial Registrar on 18th October 1985, and became matter
number T4 of 1985. The irreqularity alleged in it originally was
the wrongful acceptance by the returning officer of the
nomination of Ms. Faitton; it was alleged that Ms. Fitton was
iuneliqible to be a member of the ordqanization., and was not a
-4-
member at the time when her nomination was lodded.
The allegations made in matter number T4 of 1985
prompted the filing by Ms. Fitton of the application in matter
number T6 of 1985. That application is made pursuant to s. 171C
of the Act; 1t seeks a determination as to whether an invalidity
occurred in the appointment of Ms. Fitton as an orqanizer of the
Tasmanian Branch of the Association. If such an invalidity is
found to have occurred. the application seeks orders curina the
effect of any such invalidity. In addition to making that
application, Ms. Fitton filed in matter number T4 of 1985 points
of contention, which alleged that Mr. Smith had never been a
member of the Association, and therefore was not eligible to be a
candidate for the position of secretary/treasurer in the
election.
The final relevant application was matter number T7 of
1985. That was an application by Mr. Smith, pursuant to s. I171E
of the Act. seeking a declaration of his entitlement to be
admitted as a member of the Association. and to be treated as
having been a member from 19th November 1984.
On 26th November 1985, the hearing beqan of the matters
numbered T4. T6 and T7 of 1985. These were heard together bv
consent. The hearing proceeded for two full davs. At the
beginning of the third day, counsel for Mr. Smith indicated that.
subject to the completion of certain matters, his instructions
and those of his instructing solicitor had been withdrawn. On
behalf of Mr. Smith. counsel sought leave to discontinue matter
- 5 -
number T7 of 19985. Such leave was aranted. The other parties
then considered their positions. An application was then made by
counsel for each of the returning officer, the Association, Ms.
Ransley. Ms. Fitton and the branch president of the Tasmanian
Branch of the Association for the matters numbered T2 and T3 of
1985 to be called on, and for them to be heard together with the
matters mumbered T4 and T6 of 1985. It was recoagnized that the
allegation had been made that Mr. Smith never had been a member
of the Assocration. If that allegation were sustained, Mr. Smith
was not capable of initiating an inquiry into the election,
because he did not fall within the cateqories of persons referred
to in s. 159(1) of the Act. To prevent difficulties, all parties
agreed that all allegations raised in matter number T4 of 1985
should be treated as having been raised in matter number T3 of
1985. The documents filed in the former matter were treated as
having been filed in the latter. by direction of the Court. Mr.
Smith indicated that he wished to take no further part in the
proceedings, including the cross-examination of witnesses, but
indicated his preparedness to assist the Court by giving any
further evidence, if the Court so required. He did in fact
cross-examine one subsequent witness.
The result was a composite proceeding in which were
raised the issues of the eligibility of each of the three
candidates to nominate for the office of secretary/treasurer.
Other alleaations of irregularities were also made, which were
not mentioned in any of the original applications. These were
allegations that Mr. Smith and Ms. Fitton respectively had made
improper use of the funds and resources of the Association, and
- 6 ~
their positions within the branch, in campaigning for their
election.
At the outset, there arises the question whether the
rules of the Association disclose any requirement that a
candidate for the office of branch secretary/treasurer be a
member of the Association. If there is no such requirement. no
question arises as to the eligibilitv of any candidate to
nominate. The rules do not state such a requirement expressly.
By contrast, rule 20(2)(b) does require that every nominee for
the offices of federal president, deputy federal president,
federal secretaryv/treasurer. and assistant federal secretary "be
a financial member of the Association". Rule 47, which 1s headed
"Eligibility to Nominate for Office". provides:
"47. A member of the Association who has reached the age
of 65 years shall be ineligible to be nominated for
election for any office in the Association."
In rule 55(2)(a), it is provided that "A member who is
unfinancial is ineligible for nomination to any position as
officer...". This rule relates to branch elections, including
those for branch secretary/treasurer. It might be thought that
the negative wording of rule 55(2) (a) had been chosen
deliberately, to achieve a result different from that achieved by
rule 20(2)(b). Certainly, on a literal construction, non-members
appear not to be excluded from branch offices. Such a
construction would lead to strange results. A member who is
unfinancial could not seek branch office, but a non-member who
owes no financial obligation to the Association at all, could. A
member over sixty-five vears of age would be excluded by rule 47,
- 7 ~
but a non-member of anv age could stand. Rules 47 and 55:2)(a)
assume that the field of potential candidates is limited to
members; they are not intended to leave the gate open for
outsiders. The passage I have quoted from rule 55(2)(a) is no
more than a clumsy attempt to express the positive requirement of
rule 20(2)(b), in relation to branch officers. Given the nature
of the Association, and the context of its rules, 1t is implicit
in those rules that all candidates for branch offices are
required to be members. This was common ground among all parties
who appeared in the proceedings.
The eliqibility of each of the candidates depended uron
whether he or she had become a member of the Association. Issues
were raised in each case as to eligibility for membershivo at the
time when the oarticular candidate joined or purported to join.
and as to the process of joining. Rule 5 of the rules of the
Association specifies the classes of persons eligible to belong
to the Association. Most of them are Commonwealth public
servants, or employees of Commonwealth ainstrumentalities, in
various specified classifications. Rule 5(5) provides as
follows:
"(5) Together with any Industrial Officer or Research
Officer or other employee of the Association
appointed by the Federal Council or any Branch
Committee of Management."
Rule 7 of the rules of the Association is in the following terms:
"7, An applicant for admission to membership of the
Association shall apply to the appropriate Branch
Secretary on the prescribed form (see Appendix A)
and upon the Branch Secretary or his delegate being
satisfied as to his eliqibility and upon the
payment of the prescribed subscription or evidence
- 8 -
that the prescribed subscription will be paid, he
shall be enrolled as a member."
Originally matter number T4 of 1985 was based primarily
upon the allegation that Ms. Fitton had never been "appointed" by
the branch committee of management, within the meaning of rule
5(5). and that her purported application for membership of the
Association was therefore void. When the matter came on for
hearing, counsel for Mr. Smith abandoned this ground. Counsel
for the other parties agreed that no issue would be made of this
ground. Counsel for Mr. Smith directed attention instead to the
validity of rule 5(5). His argument was that, to the extent to
which rule 5(5) permits to be members of the Association persons
who are not "officers", within the meaning of that word as used
in s. 132(1) of the Act, the rule offends against the »rovisions
of the Act. It makes the Association an association of a kind
different from that permitted to become registered pursuant to s.
132(1), and constitutes a breach of the conditions with which an
organization must comply, pursuant to s. 132(2) of the Act and
regulation 115(1)(a) and (2) of the Conciliation and Arbitration
Regulations. The rule is therefore 1n contravention of s.
140(1)(a) of the Act. unless read down, so as to exclude from its
ambit persons who are not "officers". It was arqued that an
organizer performing duties of the kinds which Ms. Fitton was
obliged to perform was not an "officer", and could not become a
member of the Association.
It is convenient to set out the history of the
membership of each of the three candidates.
- 9 -
In 1984, the Tasmanian Branch of the Association was in
a poor state. Its membership was not much over 500. and many
members were not financial. The then branch secretary/treasurer,
Mr. Wayne Spaulding, was 111. The branch president, Mr. Tony
Lowe, set out to try to rescue the branch. A newspaper
advertisement was published, seeking an organizer. One of the
applicants was Mr. Smith. At the time, Mr. Smith was unemploved.
and actively involved in an association known as the Unemployed
Workers' Union. He was interviewed. and reqarded as the only
acceptable candidate. Discussions took place as to the manner in
which funds might be provided for his employment as an orqanizer.
One proposal was that Mr. Smith should accept emplovment as an
office manager. at the salary rate applicable to that job. This
he declined to do. Another suggestion was that he be engaged as
a recruiting officer, and paid a fee of $20.00 per new member
enrolled through his efforts. Mr. Lowe decided that the best
course was to seek assistance from the Association's Federal
Council. He attended a meeting of the Federal Council in
November 1984. By this time. Mr. Smith was already assisting in
the office of the Association, on an unpaid basis. Mr. Lowe
proposed to the Federal Council that a subsidy be provided out of
federal funds. to enable the employment of an organizer in the
Tasmanian Branch. The Federal Council agreed to provide such a
subsidy for six months. On his return to Hobart. on 17th
November 1984. Mr. Lowe engaged Mr. Smith as an organizer.
Thereafter. Mr. Smith made an application for membership
of the Association. The form on which he made his application is
in evidence. It bears the date "19/11/84", but this date has
- 190 -
Clearly been written over another date, which 15 no longer
legible. The evidence is that each new application for
membership is allocated a serial number. which is hand written in
the top right hand corner of the card. The particular card bears
the serial number 63449. The cards bearing serial numbers 63447
and 63448 are each dated 23rd January 1985. The card bearing
serial number 63450 is dated 24th January 1985. The
last-mentioned card is the application of a Ms. Bourn. Mr.
Lowe's evidence is that Mr. Smith and Ms. Bourn (who was then the
office manager of the Branch) executed their applications for
membership on the same date. He thought that this was in the
month of December 1984. A further difficulty is provided by the
fact that the serial numbers 63449 and 63450 appear to have been
written by different persons. Mr. Lowe's explanation for this is
that one of the numbers may have been written by Ms. Suzan
Turfrey, who was then employed as assistant office manager. Mr.
Smith's name subsequently appeared ona computer print-out of
names of members of the Tasmanian Branch. It was on 12th
February 1985 that his name was entered in the computer records,
which are kept in the federal office of the Association in
Melbourne. The computer print-out records Mr. Smith's membership
as having dated from 19th November 1984.
It 1s unnecessary for me to make a detailed finding as
to the date on which Mr. Smith's membership apolication was made.
The only relevance of the precise date 1s as to the nature of Mr.
Smith's duties at the time when he made his application. On the
balance of probabilities. I find that the application was not
made on 19th November 1984. The most likely date is 23rd or 24th
- ll -
January 1985, but even if the application was made in December
1984, 1t cannot affect the result.
As a result of the resignation of Mr. Spaulding from the
office of branch secretary/treasurer, an election to fill a
casual vacancy in that office was held. At the close of
nominations, the only nomination was that of Mr. Smith. On 3rd
April 1985, he was declared elected as branch
secretary/treasurer.
In July 1985, a newspaper advertisement was published,
seeking an industrial officer. One of the applicants was Ms.
Fitton. She had had some considerable experience in New South
Wales, as an organizer with the Administrative and Clerical
Officers Association, Australian Public Service, and in
conducting courses for the Trade Union Training Authority. She
was interviewed. first by Mr. Smith alone, and subsequently, on
7th August 1985, by a sub-committee, consisting of Mr. Lowe. Mr.
Smith and Ms. Melinda Tonks. a member of the committee of
Management. On the date of that interview, Ms. Fitton was
offered the 30b of organizer with the branch. She was introduced
to the remaining members of the committee of management, who had
arrived to conduct a meeting, as the new organizer. She began
work on 13th August 1985. She determined to become a member of
the Association. Even before her employment commenced. she
attended at the office of the Association on 9th August. and paid
to Ms. Turfrey, who had become the office manager, a _ sum
equivalent to one quarter's membership contributions for the
Association. At that time, because of the pressure of business,
Ms. Turfrey did not qive Ms. Fitton an application form for
membership. Such a form was filled out by Ms. Fitton. and qiven
to Ms. Turfrey. on 15th August 1985. A computer print-out from
the Federal office, dated 20th August 1985, shows an entry with
the surname "Christine" and the first name "A", The membership
number in that entry is the same as the serial number entered on
Ms. Fitton's application card, and the starting date for
membership is qiven as 15th August 1985. The entry plainly
relates to Ms. Fitton, an error having been made by using her
first qiven name as a surname.
Ms. Ransley's work history was as follows. From 1957,
for approximately three years. she worked in the
Attorney-General's Department of the Commonwealth of Australia.
as a typist in the Official Receiver's Office. She was then a
member of the Association. After some vears out of the paid
workforce, in 1976 Ms. Ransley resumed working. In 1981 she
obtained a job in the office of the Tasmanian Branch of the
Administrative and Clerical Officers Association, Australian
Public Service ("the A.C.0.A."). She seems to have had an
unusual working relationship with the A.C.0.A., which can best be
described as both part time and casual. Her normal working hours
were thirty per week, worked on five days of six hours, although
she described in her evidence these hours as "nominal". If there
was not a lot of work in the A.C.0.A. office. she did not work at
all. In March 1984, she registered with Templine, a temporary
employment service, operated by the Commonwealth Employment
Service. Through this service, she obtained a couple of short
periods of temporary employment, including one of ten days with
-13-
the Australian Public Service Board ain August 1984. On Sth
September 1985, Ms. Ransley was offered a one week temporary
engagement with the Department of Defence, as a typist. She
announced to the Tasmanian Branch Secretary of the A.C.0O.A., Mr.
Bolwell, that she intended to resian her employment with the
A.C.0.A., and to take up this temporary employment. It appears
that one means which Ms. Ransley used of endeavouring to improve
her working conditions with the A.C.0.A. was periodically to
leave, or to threaten to leave, in the hope that she would be
offered better conditions.
On 9th September 1985, Ms. Ransley began her employment
with the Department of Defence. During her lunch break on that
day, she attended at the office of the Association, filled out an
application for membership, and paid to Ms. Turfrey a sufficient
amount of money to cover one quarter's subscription for the
Association. Two davs later, on llth September, her nomination
for the position of branch secretary/treasurer was lodged with
the returning officer. The subsequent history of her membership
application is set out below.
The eligibility for membership of each of Ms. Fitton and
Mr. Smith depended upon the employment of each of them as an
organizer. The nature of the duties each was required to
undertake was the subject of a considerable amount of evidence.
With some minor variations, each appears to have undertaken
substantially the same duties. These duties included attempting
to recruit new members. informing members about the policies of
the Association and the benefits it offered them, attending
- 14 -
meetings with management personnel in the departments and
unstrumentalities where members were employed, and negotiating
with management. particularly with respect to the grievances of
undividual members. Because of the position of the Branch at the
time when Mr. Smith was first engaged as an organizer, the
emphasis was very much on recruiting members, and on making
existing members aware that the Branch was undergoing a change of
direction, and would be more active on their behalf. Ms. Fitton
was, to some extent, caught up in the problems arising from the
prevalence of repetition strain injury; she was required to
assess ergonomic furniture, which departmental management
proposed to install, and to assess whether it complied with
Association policy as to such furniture. Mr. Smith did some
research, prepared submissions, and engaged in advocacy, although
he may not have had authority to act as an advocate for the
Association because of the way in which its rules require
industrial disputes to be handled. Ms. Fitton was charged with
the editorship of newsletters for the membership, although only
one of these was produced during the relevant period, and Ms.
Fitton actually wrote only a minority of the material which
appeared in it. One of the matters which was discussed at Ms.
Fitton's interview was that she could use her experience with the
Trade Union Training Authority to conduct courses for delegates
and members. No such course was actually conducted, but I am
satisifed that, in the normal course of events, Ms. Fitton would
have conducted such courses. Mr. Smith attended departmental
induction courses for the purpose of recruiting new members; Ms.
Fitton did not actually attend any such induction course. She
attended meetings of consultative councils. set up within
- 15 -
departments pursuant to the volicy of industrial democracy. Each
of Mr. Smith and Ms. Fitton sianed his or her own correspondence
with respect to some matters. There was one incident where Mr.
Smith endeavoured to prevent Ms. Fitton from signing
correspondence. To some extent, as an organizer. each was under
the control of the secretary/treasurer. Mr. Smith was subject to
the direction of Mr. Lowe, who acted as branch
secretary/treasurer after Mr. Spaulding's resiaqnation. Ms.
Fitton was subject to direction by Mr. Smith. This did not mean
that each had to seek guidance with respect to every act.
Indeed, in representing the Association, many decisions were
required to be made, and were made by an organizer. The position
involved a good deal of responsibility for the conduct of the
affairs of the Association, on a day to day basis. It was not at
all a policy-making position, but in carrving out policy. there
was room for initiative. It must be remembered that the Branch
was quite small, and did not support a large staff. For the most
part, there was the secretary/treasurer. one organizer. an office
manager and an assistant office manager or general office worker.
Duties were shared between the secretarv/treasurer, the organizer
and the office manager, even to the extent that each of them had
some departments in which to carry out organizing duties. To
some extent. whatever needed doing was done by whichever of the
three was available to do it. In a way. the office manager was
under the direction of the organizer, as well as of the
secretary/treasurer, in the sense that she performed the tasks
she was requested to perform by the organizer.
It 15 also important to examine, in the light of rule 7
- 16 -
of the Association's rules, the procedures which were adopted for
processing applications for membership. During the office
managership of Ms. Bourn, and subsequently of Ms. Turfrey,
applications for membership were handled by the office manager.
The office manager would receive the application card, and would
write a serial number on the top right hand corner of the card.
In the ordinary case, the application card would be accompanied
by an authority, addressed to the relevant department. to deduct
from the pay of the applicant a fortnightly amount towards the
membership subscription. In occasional cases, the applicant
would pay one quarter's subscription, together with the
application. The office manager would check the details on the
card as to the applicant's employer and classification, for the
purpose of determining whether the applicant was eligible to
belong to the Association. Usually, this presented no problems,
as the applicants were invariably fourth division officers of the
Australian Public Service, or equivalent officers or employees of
the appropriate Commonwealth instrumentalities. The details on
the application form were then entered ona white sheet, which
was described as a "pro forma". In the case of a payroll
deduction authority, the authority was completed and forwarded to
the paying officer of the appropriate department or
instrumentality. Each fortnight, departments and
instrumentalities forwarded to the Branch office a computerized
sheet, indicating the names of officers and employees from whose
pay the membership subscriptions had been deducted, and the
amounts deducted. When an applicant's name came up on one of
these sheets, or, in the case of an applicant who had paid a
subscription, when a sufficient amount of material had been
- 17 -
accumulated to send to the Federal office of the Association in
Melbourne. the pro formas were forwarded to that office. The
names and details were then entered in the Association's
computer, and requiar print-outs, showing insertions. amendments
and deletions to and from the membership list were sent to the
Branch. Finally, the branch secretary was asked to siqna red
card, evidencina the membership of the particular member, and the
red card was sent to the member.
Iam satisfied that. in examining the details on the
application forms. for the purpose of determining whether each
applicant was eligible to belong to the Association, the office
manager was acting as the delegate of the secretary/treasurer for
the time being, within the meaning of rule 7 of the rules of the
Association. There is some evidence of express delegation, by
Mr. Lowe, as acting secretary/treasurer, to Ms. Bourn to perform
the task, and Mr. Smith, after his election ag
secretary/treasurer in April 1985, allowed Ms. Turfrey to
continue that practice. In my view, express delegation is
unnecessary to satisfy rule 7.
Mr. Smith's case was that any délegqation by him to Ms.
Turfrey no longer existed by the time the applications of Ms.
Fitton and Ms. Ransley were received. Mr. Smith was absent from
the Branch office during the week beginning 9th September 1985,
attending a meetina of the congress of the Australian Council of
Trade Unions in Sydney. The nominations of Ms. Ransley and Ms.
Fitton for the position of secretary/treasurer were lodged during
that week, on llth and 13th September respectively. On Monday
- 18 -
16th September, when Mr. Smith returned to the Branch office, he
was aware that these nominations had been lodged. He examined
the applications ror membership of each of Ms. Ransley and Ms.
Fitton, and purported to determine that each of them was not
eligibie for membership. His basis for this determination, in
the case of Ms. Ransley, was that she was not. on 16th September,
emploved in any of the classifications or by any of the emplovers
referred to in rule 5 of the Association's rules. In the case of
Ms. Fitton. Mr. Smith purported to determine that she had never
been "appointed" by the branch committee of management, within
the meaning of rule 5(5). Thereafter, Mr. Smith advised each of
Ms. Ransley and Ms. Fitton by letter of the rejection of their
membership applications. He aiso advised the returning officer
that each of them was ineligible to nominate.
Ms. Turfrey swore that, on 16th September. Mr. Smith
"went crook" at her for receiving Ms. Ransley's application. He
reauired Ms. Turfrey to make a statutory declaration. which was
hand written by him. and signed by her in front of a justice of
the peace at the Australian Legal Aid office. approximately a
minute's walk from the Branch office. This statutory declaration
was in the following terms:
"I, Sue Turfrey of 3 Ewins Court Glenorchy, in Tasmania
do hereby solemnly and sincerely declare that on lst
August 1985, Lee Smith the Secretary of APSA instructed
me that any new applications for membership to the APSA
must be made to the Secretary who would determine their
eligibility for enrollment£sicl."
In the witness box, Mr. Smith swore that he had given a direction
in these terms to Ms. Turfrev, but denied that it had been given
~ 19 -
on ist Auqust. He claimed to have given such a direction in
mid-Julv. Ms. Turfrey also swore that a direction was given bv
Mr. Smith to her to show him all membership applications before
they were processed. She also denied that this direction was
qiven on ist August, and swore that it was given during the first
week 1n September, the week immediately preceding Mr. Smith's
trip to Sydney. She was unable to qive a satisfactory
explanation as to the inclusion of the date 1st August in the
statutory declaration.
Mr. Smith's evidence included a number of statements
inconsistent with revocation of the delegation in mid-July. At
one stage he contended that no delegation had ever occurred. At
another, he put the date of the revocation as some time in
August. Clearly, on 16th September, and thereafter, it suited
Mr. Smith to claim that revocation had occurred. Further, it
suited him to claim that it had occurred at a time prior to Ms.
Fitton's application for membership, as well as that of Ms.
Ransley. If neither of those persons was a member, Mr. Smith
would have regarded himself as the only candidate in the
election. Ms. Turfrev's position was somewhat different from
that of Mr. Smith. She claimed to have been a supporter of Mr.
Smith on 16th September. Subsequently, according to her
evidence, she changed her mind, and threw her support behind Ms.
Fitton. By the time she came to give evidence, it was apparent
to her that to insist on a revocation of her delegated authority
on lst August 1985 would have been to invalidate Ms. Fitton's
membership, as well as that of Ms. Ransley. She no longer
desired this end. She therefore had a motive to put the date of
- 20 -
the revocation at a time between the two relevant applications
for membership. In fact, as the evidence indicates. Ms. Turfrey
dealt with Ms. Ransley s application in precisely the same way as
she would have dealt with it 1f no revocation had taken place;
she checked the facts stated in the application, enquired of Ms.
Ransley about her employment in the Australian Public Service.
accepted an amount of money equal to one quarter's subscription,
and transferred the details on the application card toa pro
forma. If she had really been told by Mr. Smith not to process
any membership applications without placing them before him, it
1s extremely unlikely that she would have performed all of these
tasks in exactly the same way as she had prior to that date. She
would have been more likely to have told Ms. Ransley that she
could do nothing about her membership application until Mr. Smith
returned from Sydney. Not only was Ms. Turfrev's approach to
membership applications the same in September as it had been
earlier, but the evidence discloses that Mr. Smith did not
inspect any membership application. for the purpose of
determining whether an applicant was eligible for membership,
until 16th September. On that date. Mr. Smith was determined to
sabotage the nominations of both Ms. Fitton and Ms. Ransleyv. and
Ms. Turfrey was prepared to assist him. There was some evidence
that Mr. Smith threatened Ms. Turfrev that she would be dismissed
from her job if she did not assist. This may have contributed to
her willingness to sign the statutory declaration. I do not
accept her evidence that she did not notice the date in the
statutory declaration. I am of the view that she was prepared to
make a declaration in that form on 16th September, but afterwards
regretted this. as it affected Ms. Fitton adversely. For these
- 21 -
reasons, I do not accept that Mr. Smith at any time revoked his
delegation to Ms. Turfrey of the function of being satisfied as
to the eligibility of applicants for membership.
Counsel for the branch president suqqested that the
evidence disclosed a chain of invalidity, which began at the time
when Mr. Lowe purported to occupy the position of branch
secretary/treasurer after Mr. Spaulding's resignation. Rule
56(2) of the rules of the Association permitted a branch qeneral
meeting to fill a casual vacancy 1n an office by appointment, for
@ period not exceeding ninety davs. After Mr. Spauldina's
resiaqnation took effect, in November 1984, the branch committee
of management purported to appoint Mr. Lowe as branch
secretary/treasurer, pursuant to this rule. Not only did the
committee of management not have power to make such an
appointment. but there were, at the time, insufficient persons
filling the positions which made up the branch committee of
management for a quorum to be formed, even if all such persons
attended a purported meeting. Mr. Lowe's appointment was,
therefore. invalid. One of the acts which Mr. Lowe did as branch
secretary/treasurer was to delegate to Ms. Bourn, the then office
manager, the task of determining the eligibility of applicants
for membership. It was argued that this delegation was invalid,
as it flowed from Mr. Lowe's invalid appointment as branch
secretary/treasurer. From this. it was said, stemmed an
invalidity in Mr. Smith's application for membership, as there
was no person who could be satisfied as to his eligibility
pursuant to rule 7 of the rules of the Association. If Mr. Smith
did not become a member, his nomination for the position of
- 22 -
branch secretarv/treasurer., which resulted in his election to
that position on 3rd April 1985. was similarly invalid.
Accordingly. he could not make any valid delegation pursuant to
rule 7 to Ms. Turfrey, or anyone else, so that no person existed
who could perform the duties required by rule 7 in relation to
any subsequent application for membership. including those of Ms.
Fitton and Ms. Ransley. The short answer to this reasoning lies
un s. 171B of the Act. Under that section, all acts done in good
faith by a person purporting to hold an office are valid,
notwithstanding any invalidity that may afterwards be discovered
in the election or appointment of such person. By virture of
sub-s. (3)(a), the onus of proving lack of qood faith lies on
anyone who alleges it. There is no evidence that Mr. Lowe or Mr.
Smith acted otherwise than in good faith in makina their
delegations. By sub-s. (3)(c). knowledge of facts from which an
invalidity arises 1s not of itself to be treated as knowledge
that the invalidity exists. It can therefore truly be said that
any invaliditv in Mr. Lowe's appointment or in Mr. Smith's
election, as branch secretary/treasurer Was afterwards
discovered. For these reasons, acts performed by them in that
office are to be treated as valid. This validation operates to
break the chain of invalidity at its first link, and to render
valid all the matters which would otherwise have been
invalidities flowing from the defect in Mr. Lowe's appointment.
It 1S convenient to set out the relevant parts of s. 132
of the Act:
"132(1) Any of the following associations or persons
may, on compliance with the prescribed conditions, be
registered 1n the manner prescribed as an organization:
{b) any association the members of which 1nclude
not less than one hundred employees in or in
comnection with any industry and the other
members, if any, of which are-
(i) officers of the association: or
(11) persons who are employees who are
qualified to be employed in or in
connection with that industry."
The prescription or the terms and conditions contemplated bv
sub-s. (2) is found in reg. 115 of the Conciliation and
Arbitration Requlations. So far as relevant, this requlation is
in the following terms:
"(1) The following conditions are prescribed conditions
to be complied with by an association applying for
registration. namely:-
(a) the association shall be a voluntary and bona
fide association of a kind referred to in
section 132 of the Act:
{2) The conditions specified in the last preceding
sub-requlation apply in relation to organizations in
like manner as they apply in relation to an association
applying for reqistration as an organization."
The relevant provisions of s. 140(1) of the Act are:
"140(1) The rules of an organization-
(a) shall not be contrary to, or fail to make a
provision required by. a provision of this
Act, the requlations or an award or otherwise
be contrary to a law."
Counsel for Ms. Fitton endeavoured to argue that an
allegation that a rule was in contravention of s. 140 of the Act
could not be raised in the context of an inquiry pursuant to
Part IX of the Act. He recoanized that this araument ran against
the authority of the Full Court in Leveridge v. Shop Distributive
and Allied Employees' Association (1977) 31 F.L.R. 385, but
contended that the judgment of the High Court of Australia in R.
v. Gray; Ex parte Marsh (17th October 1985, not vet reported)
has so narrowed the view which could properly be taken of an
"irregularity" for the purposes of Part IX of the Act, that it
was no longer permissible to challenge in an inquiry the validity
of a rule upon which some past act was done. I do not accept
that the High Court has so narrowed the concept of tirreqularity.
The past invalidity of a rule, on the basis of which was
performed some act upon which the validity of an election
depends, is perfectly capable of amounting to the sort of
departure from rule or principle referred to in the judgment of
the Chief Justice at page 20. Another analysis is. however,
possible in the present case. It is alleged that, upon the true
construction of rule 5(5), a candidate or candidates could not
have been eligible for membership of the Association. In
determining the true construction of this rule, the effect upon
it of s. 140 must be taken into account. If. when read so as to
make the candidates eligible, rule 5(5) would contravene s. 140,
it may be permissible to read down the rule, so as to preserve it
from such contravention. When the rule is read down in such a
way, it may be construed as excluding a candidate or candidates
from membership. The acceptance of a nomination from an
ineligible candidate would amount to a breach of the rules of the
Association. The statutory extended definition of "irreqularity"
in s. 4(1) of the Act specificallv refers to "a breach of the
rules of an organization".
In assessing the strenath of the arqument which was
outlined in opening by counsel on behalf of Mr. Smith. it is
leaqitimate to enquire whether the categories of members referred
to in s. 132(1)(b) of the Act are exhaustive. There 1s a lond
line of authority to the effect that a mamber of an orqanization
who, by reason of a change 1n his or her occupation, ceases to
fall within the categories of persons eligible to belong to the
organization, does not thereby automatically cease to be a
member, unless the rules of the particular orqanization so
provide. See Cameron v. Duncan (1965) 8 F.L.R. 148, Troja_ v.
Australasian Meat Industry Employees' Union (1978) 46 F.L.R. 340,
at pages 346-348, Sims v. Australasian Institute of Marine and
Power Engineers (1980) Industrial Arbitration Service. Current
Review, 575. Re Federated Clerks Union of Australia (1982) 1 I.R.
217, at page 218. Prichard v. Krantz (Federal Court of Australia,
Smithers, Northrop and Keely JJ., 21st October 1983, unreported),
Prichard v. Krantz (1983) 6 1I1.R. 271. at page 273, Turner v.
Australasian Coal and Shale Emplovees Federation (1984) 55 A.L.R.
635, at pages 650-651, Re Application by Prichard for an Inauirv
into an Election in the South Australian Branch of the Federated
Clerks Union of Australia (Federal Court of Australia, Gray J.,
2nd April 1985, unreported) at pages 13-14, and Bailev v. Krantz
(Federal Court of Australia. Gray J., 16th July 1985) at page 99.
This position seems to be recognized by s. 144(2) of the
Act, which provides that the provisions of sub-s. (1) of that
section do not permit a person "to remain a member if he ceases
-~- 26 -
to be so included Cin a cateqory of persons who are eligible for
membership of the organization] and the rules do not permit him
to remain a member." It has never been suggested in any of the
cases to which I have referred that the absence of a rule
automatically terminating the membership of a person who ceases
to be eligible leads to the organization concerned becoming an
association which is not of a kind referred to in s. 132 of the
Act. It may be that persons who cease to be eligible, but remain
emplovees, would be regarded as falling within s. 132(1)(b)(ii),
as persons who are employees who are qualified to be emploved in
Or in connection with the relevant industry. The cases, however,
have not distinguished between members who are still employees
but have become ineligible, and members who have ceased to be
employees. This line of authority, therefore, must give rise to
some doubt whether the words "if any" ins. 132(1)(b) have the
effect of makina the categories of membership in that provision
the only categories which an organization can have legitimately.
For the purposes of these proceedings, however, I am
prepared to assume that s. 132(1)(b) limits the categories of
membership which the Association may have to employees who are
employed in or in connection with the relevant industry, officers
of the Association. and employees who are qualified to be
employed in or in connection with the relevant industrv. On this
basis. three possible categories were suggested, into which it
was said that Mr. Smith and Ms. Fitton, as organizers. could fit.
It was suggested by counsel that organizers could be officers,
employees who were qualified to be employed in or in connection
with the industry specified in the rules of the Association, or
- 27 -
employees who were employed in connection with, although not in,
that industry.
With respect to the meaning of the word "officers"" in s.
132 of the Act, 1t was accepted that the test applied by the
Commonwealth Industrial Court in Peqq v. Tavlor (1959) 1 F.L.R.
274, at page 282, and in Landeryou v. Taylor (1968) 15 F.L.R.
147, at page 157 was to be applied. This test was that "the
position must carry with it some administrative or executive
duties or some substantial degree of responsibility." Two
important points emerge from Landervou's case. The first is that
a person may be an officer within the meaning of s. 132 without
having been elected to the position he or she holds. The second
is that, in determining whether a person 1s an officer for that
purpose, the definition of "office" in s. 4(1) of the Act is not
decisive; that definition was inserted in the Act subsequently
to the use of the word "officer" in what is now s. 132.
In applying the test used in Landeryou's case. little
assistance is derived from previous decided cases. Those cases
only demonstrate the application of the test to their particular
facts. It is to be noted, however, that the actual result of
Landeryou's case was a decision that a person holding the
position of "dues collector", to which he had not been elected,
and which appeared to involve lesser responsibilities than those
undertaken by either Mr. Smith or Ms. Fitton as organizers, was
to be regarded as an officer for the purposes of s. 132.
Reference was also made to Rounsevell _v. Mitchell (1967) il
F.L.R. 414, iain which it was held that a person occupying a
- 28 -
position described as "industrial officer" was not eligible to be
a member of an organization. Insofar as the court in that case
discussed s. 132. the emphasis was on the definition of "officer"
in the rules of the orqanization concerned. See pages 430-431.
That definition was confined to elected officers. The rules of
that organization did not, therefore, purport to make the
industrial officer eligible for membership. It us true that
rules 4(i) and 53(2) of the rules of the Association set out who
shall be the federal officers and the branch officers
respectively. and that all the persons referred to are elected
officers. Rule 5(5). however, does not refer to officers
generally, but to two specific types of officers, who were not
required by the rules to be elected. and other employees of the
Association. The question is whether all or some of such
employees are officers within the meaning of s. 132. Grove v.
Rigby (1971) 19 F.L.R. 160 is also easily distinguished. [In that
case, the position of "public relations officer" was set up by
the rules as a purely formal position, apparently desiqned to
enable persons who were members of Parliament, or who held other
civic or public offices, to become members of the organization
concerned. It was clear that such persons were not, in any real
sense, officers of the organization. Reference should also be
made to Holden v. Richardson (Federal Court of Australia, Keelv
J., 2ist July 1978, unreported). In that case, the test applied
in Landervyou''s case was accepted as the appropriate test. Its
application to a research officer in the particular organization
resulted in his not being regarded as an officer for the purposes
of s. 132. Keely J., at page 6, appeared to express some doubt
as to whether the test had been correctly applied in lLanderyou's
- 29 -
case. I do not share that doubt. It seems to me to be
appropriate that the word ""orficer" in s. 132 should be
anterpreted broadly, rather than narrowly, so that organizations
may if they choose to do so, offer to their employees in
positions of responsibility the benefits of membership. Note
should also be taken of O'Donoghue v. Amalgamated Society of
Carpenters and Joiners (1979) 41 F.L.R. 197, in which an elected
organizer was held to be the holder of an "office" within the
definition of "office" in s. 4(1) of the Act.
In my view. each of Mr. Smith and Ms. Fitton. when
acting as an organizer. had sufficient responsibilitv to be
regarded as an officer for the purposes of s. 132. In the
context of a small branch, the operation of which involved shared
duties, it is not difficult to find such a level of
responsibility. It must be remembered that an examination needs
to be made of the overall duties of a position. The fact that,
a particular occupant was only in the position for a short time
and consequently. not all the duties envisaged were actually
peformed, does not mean that unperformed duties which were part
of the obligations of the office cannot be taken into account.
It does not appear that the courts have previously
looked at employees of organizations from the point of view of s.
132(1)(b)(ii). as persons who are qualified to be employed in or
in connection with the industry of the relevant organization. I
do not see any reason why this approach should not be taken. tt
is true that rule 5(5) does not make mention of any qualification
as a prerequisite for membership. It is also true that, on the
- 30 -
evidence, both Mr. Smith and Ms. Fitton would he qualified to
obtain employment in a numper of the classifications referred to
un rule 5, within the Australian Public Service or the
instrumentalities named. To be ""qualified",., one need onlv
possess the necessary skill or qualification to work in a
particular industry. See Qwens ev. Australian Building
Constructions Emplovees and Builders Labourers Federation (1978)
46 F.L.R. 16, and Turner v. Australasian Coal and Shale Emplovees
Federation (1984) 55 A.L.R. 635. A rule of an organization might
be expressed so as to give the right to membership to all of the
emplovees of the organization, without reference to their
qualifications. To the extent to which any employees miaht lack
the qualifications to be employed in or in connection with the
relevant industry, such a rule would have to be read down, so as
to avoid a contravention of s. 140(1)(a). Aside from this,
however, 1n an organization the majority of members of which
require only basic aqualifications for their employment, such a
rule appears to be valid. I am therefore of the view that, if
Mr. Smith and Ms. Fitton were employees of the Association. as
organizers, they were eligible to be members of the Association.
The third category referred to in s. 132(1)(b) of the
Act, relied on as giving eligibility for membership to Mr. Smith
and Ms. Fitton, was employees in connection with the relevant
industry. In Re Election for Office in Professional Radio
Employees Institute of Australasia (1961) 3 F.L.R. 151. Joske Jd.
held that a person who purported to occupy the position of
general secretary - treasurer of an organization was employed in
connection with the industry in which the members of the
- 31 -
organization were employed, within the meaning of s. 144 of the
Act. In Rounsevell v. Mitchell (1968) 11 F.L.R. 414, at pages
429-430. this view was rejected. The issue in that case was
whether an industrial officer, emploved by the Australian
Workers' Union, was employed in connection with the industries
listed in the conditions of eligibility for membership of that
organization, or any of them. The view taken by the court was
that an industrial officer was employed in another industry or
calling, completely different from the industries or callings in
the eligibility rule. In Egan v. Harradine (1975) 25 F.L.R. 336,
at pages 351-353, Joske J. conducted a detailed comparison of the
two approaches, and sought to resurrect the earlier view. The
other two members of the Australian Industrial Court did not
express a view on the question. None of these cases is binding
on me. The position has since become more complicated, because
of two decisions of the High Court of Australia, with reference
to the rules of the Australian Workers' Union. The first of
these cases was R. v. Moore; Ex parte Australian Workers' Union
(1976) 11 A.L.R. 449, aun which 1t was held that employees of
contractors, providing catering and accomodation services to
employees of iron ore mining companies, were not employed in or
in connection with metalliferous mining. In the second case. the
High Court held that employees of construction companies, engaged
an building structures for mining companies at and near mine
sites, were employed in connection with metalliferous mining: R.
v. Moore; Ex parte Federated Miscellaneous Workers' Union of
Australia (1978) 140 C.L.R. 470. The determination whether a
person, not engaged in an industry, is employed in connection
with that industry is obviously difficult. It is all the more
~ 32 -
difficult, in the case of an employee of an organization, the
rules of which define eligibility for membership by reference to
callings of employers. as distinct from callings of employees.
In the present case, the bulk of the members of the Association
are deemed to be employed in an industry, by the provision which
is now s. 4(7) of the Act. (A similar provision was formerly
found in s. 4 of the Public Service Arbitration Act 1920). The
concept of a person employed in connection with a deemed industry
is a difficult one as well. I am not prepared to hold in this
case that Ms. Fitton and Mr. Smith. as organizers, were employed
in connection with any relevant industry for the purposes of s.
132(1)(b). I prefer the view taken in Rounsevell v. Mitchell
(above) to that asserted by Joske J.
It was conceded that Ms. Fitton was appointed to her
position as organizer by the branch committee of management, in
the sense that she was engaged by the interviewing committee on
behalf of that committee of management. and was emploved in the
branch, over the affairs of which that committee of management
had control, by virtue of rule 53(1) of the rules of the
Association.
The position of Mr. Smith is different. By reason of
the lack of persons holding office as branch officers or branch
councillors within the branch, there was no possibility of a
quorum of the committee of management at the time when Mr. Smith
was engaged as an organizer, or at any time between then and 3rd
April 1985, when he was purportedly elected as branch
secretary/treasurer. Section 171B of the Act does not appear to
-~ 33 -
cure the want of a quorum. The want of a quorum does not involve
an invalidity in the election or appointment of the collective
body concerned. It follows that Mr. Smith was not appointed an
organizer by the branch committee of management in any sense that
would satisfy rule 5(5) of the rules of the Association. Nor was
he appointed by the federal council. Although the federal
council passed a resolution granting a subsidy to the Tasmanian
Branch to enable it to employ an organizer for six months, the
federal council itself made no appointment. Mr. Smith's name was
not even mentioned during debate on the resolution. For these
reasons, Mr. Smith's application for membership, whether it was
made in December 1984, or on 23rd or 24th January 1985, was not
valid, because he was not at that time eligible to be a member.
On ist November 1985, Mr, Smith made a further
application for membership of the Association. He did so for the
purpose of invoking the provisions of s. 171E(1) of the Act,
which are as follows:
"1L71LECL) Where a person, not being a member of the
organization or a person who has been expelled from the
organization but being a person who is eliqible for
membership, applies to be admitted as a member of an
organization and has, up to a time within 1 month before
the application, acted in good faith as, and been
treated by the organization as, a member, he 1s entitled
to be admitted to membership and treated by the
organization and its members as though he had been a
member during the whole of the time when he acted as and
was treated by the organization as a member and during
the whole of the time from the time of his application
to the time of his admission."
Mr. Smith filled out an application for membership, and handed it
to Ms. Turfrey, in the branch office. He paid her the sum of
$30.00, which was $1.85 short of the amount required for a
- 34 -
subscription for one quarter. The question therefore arises
whether this application satisfied all of the elements of s.
L71E(1).
Mr. Smith was not a member of the Association, nor was
he a person who had been expelled from it. The first issue is
whether he was, on lst November 1985, eligible for membership.
At that time. he was purporting to hold the office of branch
secretary/treasurer of the Tasmanian branch. Rule 53(2) of the
rules includes among a list of officers of a branch the secretary
and the treasurer. The duties of each of these officers are set
out in rule 60 and rule 62 respectively. Rule 53(6) provides as
follows:
"(6) Notwithstanding anvthing contained in the foreqoing
provisions of this Rule, a Branch may amalgamate
the positions of Secretary and Treasurer and if a
full-time officer is employed as Secretary the
positions shall be amalgamated under the title of
Secretary/Treasurer."
Rule 52 requires that branch officers be elected. It may be seen
that the decision whether the office of branch secretary is
full-time is a decision for each branch committee of management.
The rules of the Association do not require that it be so. The
scheme of having full-time employed staff. supervised by honorary
officers, 1s not unknown among organizations. No doubt the
duties required of a branch secretary may be onerous if they had
to be performed by a person acting in an honorary capacity. but
many of them could be performed by employees, subject to the
supervision and control of the branch secretary. It must be
assumed that the branch committee of management, at some time,
- 35 -
decided that the branch secretary should be full time, and should
therefore be a secretarv/treasurer. Rule 53(6) uses the word
"employed" with reference to such a decision. For the purposes
of these rules it may be possible to regard a full-time branch
secretary/treasurer as an employee of the Association.
In Roughan v. Coulson (1982) 3 I.R. 393, the Full Court
considered a decision of a branch committee of management to
reduce the number of organizers within its branch. The
orqanizers had been elected to their positions, and, by virtue of
those positions, were members of the committee of management. It
was held that the rules of the organization permitted the
abolition of the positions of oraqanizers, notwithstanding the
provisions of s. 133(1)(f) of the Act. The orqanization was no
longer bound to pay the organizers their salaries and other
entitlements. but the persons who held those positions were
entitled to serve out their terms on the committee of management.
At p. 397, St. John and Northrop JJ. drew attention toa rule
which permitted a branch to employ a particular officer in a
full-time organizing capacity, emphasizing the word "employ".
Their Honours then said:
"It appears to us that the true intention of the
rules is that the elected organizer is hoth a
representative of the members on the committee of
Management and, in addition thereto, may be employed by
the committee under a contract of employment."
The same kind of separation of the duties of office from the
employment of the officer appears to be present in the rules of
the Association.
- 36 -
In contrast. in Re Brzycki; Ex parte Royal Australian
Nurses Federation South Australian Branch (1984) 2 F.C.R. 546,
Keely J. held that a full-time elected secretary of an
association of employees, registered under South Australian law,
was not employed by that association. To some extent. the case
turned on the construction of particular rules. In addition,
Keelv J. had already decided it on another ground, and recognized
(at page 549) that he did not need to decide the issue of
employment. Ido not regard that case as authority for the
proposition that an elected official can never be emploved.
Roughan v. Coulson (above) is inconsistent with that proposition.
and I am bound by that Full Court decision.
From 3rd April 1985 onwards, Mr. Smith was, therefore,
an employee of the Association. The fact that he did not validly
hold the office, because he was not previously a member, does not
matter. He performed the duties, and was paid the salary. He
was appointed by the branch committee of management in the sense
that he occupied a paid position created by it, in a branch over
the affairs of which it had control. On Ist November 1985, he
was therefore eligible for membership under rule 5(5). There
cannot be any doubt that the duties of a branch secretary carried
with them the degree of responsibility necessary to make the
person performing them an "officer" within s. 132 of the Act.
The next question is whether Mr. Smith made a valid
application for membership on 1st November 1985. This depends
upon whether it was necessary for him to pay the amount of a
subscription, for such application to be valid. Rule 7 does not
-~ 37 -
require every applicant to pay a subscription; evidence that the
subscription will be paid 1s sufficient. If a member is already
financial, and 1s seeking to make an application to perfect his
or her membership under s. 171E, he or she should not be required
to make a further payment; the question is whether the
application satisfies the section, not the rule. Mr. Smith aave
evidence that he had paid subscriptions throughout his period of
purported membership. He was cross-examined to the effect that
he had not paid a quarterly subscription for the quarter
beginning on ist November 1985. In fact, under rule 41(2)(a), if
subscriptions are paid quarterly. the relevant due date was Ilst
October 1985. No evidence was produced that Mr. Smith was in
arrears at Ist November. In the normal course, he would have
paid until 31st December. In the circumstances. I am satisfied
that Mr. Smith validly applied for membership on lst November
1985.
Section 171E(1) operates to entitle Mr. smith not onlv
to be admitted to membership, but to be treated as though he has
been a member during the whole of the time when he acted as, and
was treated as, amember. The sub-section operates of its own
force, irrespective of whether an application pursuant to
sub-section (2) is made. The discontinuance of Mr. Smith's
application pursuant to s. 171E(2) is, therefore, irrelevant to
the retrospective validation of his membership.
The validity of Ms. Ransley's membership turns. on
considerations different from those applicable to Mr. Smith and
Ms. Fitton. Rule 5 of the Association's rules includes specific
eres
- 38 -
reference to any temporary employee of the Public Service of the
Commonwealth, and to typists of various kinds, among the persons
eligible to be members of the Association. Ms. Ransley was
engaged as a temporary typist with the Department of Defence on
9th September 1985, when she made her application for membership.
Her written contract of employment for one week from that date is
in evidence. On the face of it, therefore, she falls within the
conditions of eligibility for membership of the Association.
It was arqued that rule 5 should be construed so as not
to apply to employees whose employment was of such a transitory
nature as that of Ms. Ransley. This argument even went so far as
to suggest that rules which purported to provide for the
membership of "temporary" employees would fail to satisfy s. 132
of the Act, and therefore be in contravention of s. 140(1)(a).
Nothing in s. 132, however, or in the definition of "employee" in
s. 4(1), provides any indication that the period of employment of
a person is a relevant consideration. It would not be easy to
determine whether, in any given case, employment was of such a
short duration as to make the person concerned something other
than an employee in the ordinary sense of that word. The
justification for the argument was said to be the protection of
organizations from persons such as Ms. Ransley, who join with no
real intention of being employed in the relevant industry. It
might be open to an organization to frame a rule which excludes
such persons from membership, although s. 144 of the Act may
still give such persons entitlements to membership,
notwithstanding any such rule. It is sufficient in the present
case to point to the fact that the Association has not adopted
~ 39 -
any such rule. On its face, rule 5 includes persons whose
employment in the Australian Public Service is of short duration,
as well as those who are employed for longer periods. Section 82
of the Public Service Act 1922 makes provision for the employment
of persons in a temporary capacity; it was no doubt under that
provision that Ms. Ransley was employed.
The validity of Ms. Ransley's nomination for the office
of branch secretary/treasurer depends upon whether she became a
member before that nomination was lodged on 1lth September 1985.
It is therefore necessary to construe rule 7, to ascertain the
time at which an applicant for membership becomes a member. Rule
7 does not make specific provision on that subject. Argument
focussed on what constituted being "enrolled as a member" and on
whether membership was effective before such enrolment. If it
were necessary for a person's name to appear on a computer
print-out from the federal office of the Association. before that
person could be regarded as a member, then Ms. Ransley was not a
member before her nomination was lodged. If enrolment consisted
merely of placing the application card in a compilation of such
cards held in the branch, then it is not clear that this was done
before llth September 1985 in relation to Ms. Ransley. On the
other hand, if the copying of details from the application card
onto the pro forma, in preparation for sending those details to
the federal office, constituted enrolment, then on the evidence
this was done before llth September. These very questions
highlight the problem of treating enrolment as a pre-condition of
membership. The question whether a person has become a member of
an organization should not depend upon such questions as whether
ert ed
- 40 -
office employees have entered the person's name in a computer, or
whether they have chosen to print out the computer records.
unless the rule in question compels such construction. Compare
the approach taken in Re Australian Glassworkers Union (1973) 22
F.L.R. 16, at pages 27-28. In the present case, rule 7 does not
compel such a conclusion. It requires several steps to be taken
in relation to an application, namely that the application be
made to the appropriate branch secretary, that the branch
secretary or his delegate be satisfied as to the eligibility of
the applicant. and that the prescribed subscription be paid or
evidence that it will be paid be produced. It then provides
that, when these steps have been taken, the applicant "Shall be
enrolled as a member". In my view, such enrolment is an
administrative step, to be taken for the purposes of maintaining
records, after the applicant has become a member. Membership 1s
completed when the earlier steps are completed. This is
consistent with the practices of the branch with respect to
membership applications, and with the evidence of Mr. Wright. the
federal secretary of the Association, that not all branches make
use of the federal office computer for their membership records.
Ms. Ransley therefore became a member of the Association
upon the presentation of her application, the exercise by Ms.
Turfrey of her delegated authority to determine her eligibility,
and her payment of one quarter's subscription. These events all
occurred on 9th September 1985.
There was also a suggestion raised that Ms. Ransley's
application for membership was not valid. because she only
ere
- 41 -
desired to become a member in order to stand for office. It was
alleged that she was motivated to stand for office by a desire to
assist in a takeover of the Association which is said to be
contemplated by the A.C.0.A. Allegations were made of an
Australia-wide conspiracy to gain control of offices within the
Association, to cause it to agree to an amalgamation with the
A.C.0.A. I make no finding on whether these allegations are
correct or not. What 1s clear is that the motive of a person in
making an application for membership of the Association 1s not
relevant. The rules of the Association do not require that a
person be a member for any specified period before being eligible
to nominate for any office. It is therefore possible for any
person eligible to join to make an application for membership,
with a view to standing for office immediately he or she becomes
amember. The fact that such a new member may seek membership,
and office, for the purpose of changing the policy of the
Association cannot be a reason for denying the validity of
membership.
I therefore reach the following conclusions:
1. Mr. Smith was not eligible for membership when he originally
applied for membership of the Association. He was so
eligible when he made a further application on lst November
1985. He is therefore to be treated as having become a
member, and as having been eligible to be nominated for the
office of branch secretary/treasurer. No irregularity can
now be found to have occurred in the acceptance by the
returning officer of his nomination.
2. Ms. Fitton was eligible to be a member and became a member of
Sr)
- 42 -
the Association on or about 15th August 1985. She was,
therefore, eligible to be nominated for the position of
branch secretary/treasurer, and no irregularity resulted from
the acceptance of her nomination.
3. Ms. Ransley was eliquble for membership, and did become a
member of the Association on 9th September 1985. She was
therefore eligible to be nominated for the office of branch
secretary/treasurer on lith September 1985, when her
nomination was lodged. The rejection of her nomination by
the returning officer amounted to an irreqularity.
4. The irreqularity affected the result of the election, in that
voters were deprived of the opportunity to vote for Ms.
Ransley.
5. An order should be made declaring the ballot void, with a
further order for the conduct of a new ballot.
I will hear counsel as to the terms in which orders
should be made. I will also hear counsel as to the terms of any
interim order as to the occupation of the position of branch
secretary/treasurer, pending any further ballot.
The allegations that the funds and resources of the
Union, or the positions of Ms. Fitton and Mr. Smith, were misused
for the purposes of the election were not pursued, and it is
unnecessary to make any finding upon them. If Mr. Smith did make
improper use of his position, or of the resources of the branch
office, in campaigning for his re-election, the result of the
election was not thereby affected, as he was the losing candidate
in any event. Ms. Fitton gave evidence denying the allegations
"se a
- 43 -
which were made against her. I accept that evidence.
In the light of the finding that Ms. Ransley became a
member of the Association on 9th September 1985, it is
unnecessary to pursue matter number T2 of 1985. Section 144 of
the Act is available to a person who has failed to be admitted to
membership of an organization by complying with the procedures
laid down in the rules of that organization. It presupposes an
entitlement to membership of the organization, existing at the
date when the application is made to the court. See Turner v.
Australasian Coal and Shale Employees Federation (above). If she
had not succeeded in obtaining membership in the ordinary way on
9th September 1985, Ms. Ransley may have had difficulty in
satisfying the Court as to her entitlement to membership at the
date when matter number T2 of 1985 was commenced.
As no irregularity has been found to exist in matter
number T4 of 1985, the proper course is simply to terminate the
inquiry the subject of that matter. As a result of the
concession that Ms. Fitton was properly appointed an orqanizer,
and the conclusion that she became a member on or about 15th
August 1985, it is unnecessary to make any order in matter number
T6 of 1985. That matter will also be dismissed. As I have
already said, leave to discontinue matter number T7 of 1985 has
already been granted.
I certify that this and the 42.
preceding pages are a true copy of the
Reasons for Judgment herein of his Honour
Mr, Justice G roy
Associate
Dated: oliz [8s .
bet eit mal ada!